2010–2011 InsightsBusiness Decisionsin2012 Data andIntelligence toMake Better

Insights 2010–2011 About Strategic Insights

The Strategic Insights and Analytics department at Jumpstart Automotive Group provides automotive industry data analysis and market intelligence. Audience behaviors and campaign data are used to understand the automotive shopping process on third-party websites and how advertising influences consumer shopping and interest. Outside of standard audience trending reports, Insights produces case studies and industry white papers to better inform marketing decisions and share best practices among agencies and automotive clients.

In 2011, Jumpstart launched True Market Impact™ (TMI), a proprietary metric that helps advertisers better understand audience and product perceptions. TMI helps prove advertiser performance by measuring consideration, brand engagement, competitive share of market, market demand and purchase intent together. By utilizing this game-changing method, Jumpstart helps advertisers understand their audience and product perceptions to create more precise marketing solutions. Table of Contents

Section 1: Digital Audience Section 3: Automotive Marketing Insights

1.1 Who is Shopping on Jumpstart Sites? 6 3.1 Highlights of Super Bowl 2010 44 Automotive Advertising ROI 1.2 Jumpstart Sites vs. Top Automotive 7 Resource Competitors 3.2 Super Bowl 2011 Advertising Generates 46 Strong ROI for , Mini, Kia and 1.3 In-Market Audience Trends 11 on Jumpstart Sites 3.3 Small Car Shopping Growth: 48 Pent-up Demand or Just Window Shopping?

3.4 Facebook Proves Highly Effective 56 Section 2: Case Studies and White Papers Outlet in the Launch

2.1 Impact Regional Purchase Intent: 22 3.5 Launches Luxury Vehicle Advisor 58 In-Market Digital Media Significantly Shifts Local and Regional Purchase Intent 3.6 2011 Audience Shopping and Research 60 Trends Compared to Automotive Industry 2.2 Subaru’s In-Market Success Story: 30 Sales, Continued Growth Expected in 2012 Subaru Leaps Ahead in Consideration Among Competitors Through Sponsorship on Jumpstart Sites

Section 1: Digital Audience 1.1 Who is Shopping on Jumpstart Sites? ?

• 65 percent of Jumpstart shoppers are between the ages of 36 • 36 percent also use forums or communities as part of their and 64 with a 51/46 percent male/female split, 3 percent who automotive research process, with 21 percent stating preferred not to answer. frequent or very frequent use and 45 percent stating rare or occasional use. • 47 percent use dealership websites, with nearly 45 percent 58% of consumers on stating frequent or very frequent use. • When looking at CarandDriver.com and RoadandTrack.com, Jumpstart sites are nine in ten panelists agree they consider themselves enthusiasts and people often ask their advice when it comes researching the purchase to cars1. of a new/used vehicle, with • 63 percent of shoppers agree that price is a primary concern when purchasing a new vehicle. 35% expecting to purchase • Nearly 60 percent of shoppers agree that they usually stick to in the next two months a brand that they trust. • 68 percent state that they always have the latest tech gadgets, and nearly 60% looking showing high composition of early adopters. to purchase in the next • The majority of shoppers (66 percent) do not do their own automotive repairs, however nearly 60 percent state that they six months. enjoy other home DIY projects.

• 35 percent of shoppers anticipate a purchase price between $15,000 to 25,000, while 19 percent expect to pay a 33% of shoppers either minimum of $25,000. completely or somewhat • 36 percent of shoppers are utilizing two to three automotive resource websites in their purchase process, while nearly 58 agreed that people come percent use between two to six sites. to them for automotive • 46 percent are using manufacturer websites and of those, 17 percent state that they use them very frequently and 30 advice, showing a percent frequently. • 32 percent of shoppers are now using automotive blogs in significant audience their research process, with only 16 percent stating frequent of influencers. or very frequent use and 43 percent stating rare or occasional use.

• 67 percent of CarandDriver.com reader panelists and 74 percent of RoadandTrack.com reader panelists have stated Source: Jumpstart’s Audience Profile Survey, November 2010, except where noted that they enjoy working on their cars2. 1. Car and Driver, Road & Track Online Reader Panel Profiles, July 2010

2. Auto Aftermarket Survey, Car and Driver, Road & Track Online Reader Panel, October 2010

6 Jumpstart Automotive Group Insights 2010–2011 1.2 Jumpstart Sites vs. Top Automotive Resource Competitors1

FIGURE 1.2.1

JumpstartJUMPSTART Unique WEBSITES Visitors UNIQUE VISITOR TRAFFIC

January 2010–December 2011

8,000

7,000

6,000 Jumpstart’s audience has increased 67% since 2009 5,000

4,000

3,000 UNIQUE VISITORS (000) 2,000

1,000

0 Jan Apr Jul Oct Jan Apr Jul Oct

2010 2011

Jumpstart’s audience has grown at an average monthly rate of 3% from 2010 to 2011

Source: comScore MediaMetrix, December 2011

Digital Audience 7 FIGURETOP 1.2.2 AUTOMOTIVE RESOURCE WEBSITES TopUNIQUE Automotive VISITOR Resource & MONTHL Websites Y PAGE VIEWS Average Monthly Unique Visitor

January 2010–December 2011

14,000

) 12,000

10,000

8,000

Y UNIQUE6,000 VISITORS (000

4,000 ERAGE MONTHL

AV 2,000

0 SIM Yahoo! AOL Jumpstart MSN AutoTrader Kbb.com Edmunds.com Cars.com Automotive Autos Autos Automotive Autos

2010 2011

Source: comScore, December 2011

8 Jumpstart Automotive Group Insights 2010–2011 FIGURE 1.2.3 Percent of Cross-Visitation Among Top Automotive Resource Websites

December 2011

TOTAL Jump- Media in Yahoo! AOL Auto- MSN SIM Ed- Audience start Kbb Cars Rows Autos Autos Trader Autos Auto munds (000) Auto

Yahoo! Autos 12,148 100 13.4 16.7 20.0 10.7 16.1 19.6 17.5 20.1

AOL Autos 8,100 8.9 100 10.1 14.5 8.0 11.8 13.8 12.2 14.4

AutoTrader 7,608 10.4 9.5 100 25.0 10.7 17.2 23.5 27.5 31.6

Jumpstart Automotive 7,599 12.5 13.6 24.9 100 13.7 28.6 29.3 24.9 28.0

MSN Autos 6,212 5.5 6.2 8.7 11.2 100 7.2 9.6 7.4 6.8

SIM Automotive 5,758 7.6 8.4 13.0 21.6 6.6 100 22.6 15.1 18.5

Edmunds. com 5,159 8.3 8.8 15.9 19.9 8.0 20.2 100 26.1 24.5

Kbb.com 4,834 7.0 7.3 17.4 15.8 5.8 12.7 24.5 100 24.1

Cars.com 4,683 7.8 8.3 19.5 17.3 6.4 15.1 22.3 23.3 100

Jumpstart audience shows high duplication with Source Interlink mainly due to enthusiast titles Car and Driver and Road & Track having similar audience to Motor Trend and Automobile.

Source: comScore, December 2011

Digital Audience 9 FIGUREMOST 1.2.4 RESEARCHED VEHICLE CATEGORIES Share& SUB-CA of ShoppingTEGORIES ON JUMPSTART WEBSITES by Vehicle Categories

January 2009–December 2011

40%

35%

30%

25% ART SHOPPERS 20%

15%

10% % SHARE OF JUMPST 5%

0% sedan SUV CUV sports car / compact / truck wagon alternative van convertible coupe fuel

2009 2010 2011

Source: Jumpstart Audience Analytics, January 2012

10 Jumpstart Automotive Group Insights 2010–2011 1.3 In-Market Audience Trends on Jumpstart Sites

FIGURE 1.3.1 SHARE OF SHOPPING BY VEHICLE CATEGORIES Most Researched Vehicle Categories and Sub-Categories

January 2010–December 2011

alternative fuel van 4% 3% wagon 4%

truck 6%

compact / sedan coupe 36% 7%

sports car / convertible 9%

CUV SUV 11% 20%

Digital Audience 11 FIGURE 1.3.2 Top Sedans: Sedan Breakdown Share of Segment

January 2009–December 2011

In 2010 the overall sedan segment across Jumpstart sites was down 7 percent in shopper interest compared to 2009 and Make Model 2009 2010 2011 down 10 percent from 2008. The overall segment leveled out in 2011, remaining flat compared to 2010. Civic 8.2% 7.5% 7.7%

Much of the loss from the sedan segment has moved over to 8.6% 7.7% 7.3% crossover utility vehicles (CUV), sports utility vehicles (SUV) and even a small portion to alternative fuel vehicles as many of the 4.5% 4.5% 6.4% most popular sedans offer a hybrid version. Camry 6.7% 6.3% 5.9%

Some major contenders coming Chevrolet Impala 7.1% 6.1% 5.8% out of 2011 are the Hyundai Sonata Hyundai Elantra 2.6% 3.2% 4.7% and Elantra Hyundai Sonata 2.5% 4.1% 4.4%

Nissan Altima 5.1% 5.1% 4.2% Among the top vehicles leading the standard segment are common high volume vehicles such as the Honda Accord, Ford Fusion 3.3% 2.9% 3.9% and . Chevrolet’s long-standing Impala continues to be a contender, while its Malibu didn’t 3 3.2% 3.3% 3.7% make the list.

Climbing up the list in 2011 were the Hyundai Sonata and Elantra. Sonata jumped 64 percent in share within the sedan segment from 2009 to 2010, jumping up seven spots in the rankings. Its growth from 2008 is even greater at 104 percent. Elantra saw 23 percent growth from 2009 to 2010 but saw even more significant growth in 2011, jumping 47 percent and claiming nearly 5 percent share of the category.

Under the luxury sedan classification, BMW still holds an impressive lead with over 11 percent share of the segment with the 3-Series, creating the largest gap among top competitors in the category. the TL and A4, both of which have been top three contenders since 2008, are still a minimum of three share points behind the 3-Series.

12 Jumpstart Automotive Group Insights 2010–2011 FIGURE 1.3.3 FIGURE 1.3.4 Top Luxury Sedans: Share of Shopping: Share of Segment Sedan;SHARE Luxury OF vs. SHOPPING Non-Luxury SEDAN, LUXURY VS. NON-LUXURY January 2009–December 2011 January 2009–December 2011 JanuaryDecember 2010 luxury Make Model 2009 2010 2011 sedan 27% BMW 3-Series 12.5% 11.2% 11.3%

Acura TL 7.3% 7.6% 7.8%

Audi A4 8.9% 9.4% 7.4%

Cadillac CTS 8.8% 5.7% 6.4%

BMW 5-Series 5.5% 4.8% 4.8%

Audi A6 3.8% 4.0% 4.5%

Acura TSX 3.9% 3.6% 4.2% non-luxury sedan 73% Mercedes C-Class 3.5% 3.3% 3.6%

Volvo S60 2.5% 2.7% 3.3%

Mercedes E-Class 5.4% 3.1% 2.9%

Digital Audience 13 FIGURE 1.3.5 Top SUVs: SUV Breakdown Share of Segment

January 2009–December 2011

Although the belief has been that SUVs are losing share due to growth within the more fuel efficient crossover segment, there Make Model 2009 2010 2011 is still shopper interest and demand out there for vehicles in this category. 7.4% 6.5% 9.6%

In fact, the category grew 11 percent from 2009 and 14 percent Ford Explorer 7.1% 6.5% 9.6% from 2008. Despite a drop in shopper interested share in 2011, the segment is still being driven by some of the smaller, more Honda CR-V 7.4% 5.6% 7.1% fuel efficient vehicles. 6.4% 5.5% 6.2% Three of the top five SUVs for the past three years are smaller Toyota Rav4 models, with Ford Escape and Honda CR-V remaining neck in 4.3% 5.6% 5.8% neck in the top three. At 9.6 and 7.1 percent share of the Jeep Wrangler category, these vehicles have seen growth ranging from 27 to 2.3% 2.9% 4.8% 48 percent from 2010. Kia Sportage

Both Jeep Wrangler and the redesigned Grand Cherokee saw 4.9% 4.4% 4.7% significant growth since 2009 (30 and 67 percent, respectively), Grand but the comparison of their growth since 2008 (52 percent for Jeep 2.9% 4.8% 4.2% Cherokee the Wrangler and 237 percent for the Grand Cherokee) really shows marked improvement in the brand, including enhanced 3.4% 3.3% 3.9% quality of product and marketing efforts since the automaker emerged from bankruptcy. 3.2% 3.4% 3.5% On the luxury side, slight growth has also been realized among the luxury SUV segment, with a 3.5 percent increase compared to 2009 and a 27 percent increase compared to 2008.

With relatively steady gas prices over the past two years, consumers have continued shopping for larger, luxurious gas guzzlers such as the Escalade, Cayenne and Lincoln Navigator. The Lexus RX tops the category holding nearly 18 percent share (28 percent growth from 2010 and 29 percent growth from 2009), moving ahead of the Escalade for the first time ever.

14 Jumpstart Automotive Group Insights 2010–2011 FIGURE 1.3.6 FIGURE 1.3.7 Top Luxury: Share of Shopping: SUVs Share of Segment SUV; LuxurySHARE OFvs. Non-LuxurySHOPPING

January 2009–December 2011 January 2009–DecemberSUV, LUXURY 2011 VS. NON-LUXURY

JanuaryDecember 2010 Make Model 2009 2010 2011 luxury SUV 15% Lexus RX 13.6% 13.8% 17.6%

Cadillac Escalade 15.5% 12.5% 11.2%

Porsche Cayenne 8.7% 8.6% 11.0%

Infiniti FX 7.3% 6.6% 8.0%

Volvo XC90 7.6% 8.5% 7.3%

Land Rover Range Rover 4.8% 4.7% 6.9%

Lincoln Navigator 8.1% 7.5% 5.4% non-luxury SUV Infiniti QX 0.1% 3.3% 5.0% 85%

Volvo XC70 4.2% 3.0% 2.8%

Lexus GX 3.1% 2.6% 2.8%

Digital Audience 15 FIGURE 1.3.8 Top CUVs: CUV Breakdown Share of Segment

January 2009–December 2011

The CUV category continued to see significant growth, with a 36 percent increase from 2009 and a 46 percent increase from Make Model 2009 2010 2011 2008 when the segment was still fairly new. CUVs have been successful in moving consumers out of the sedan, wagon and Chevrolet Equinox 11.7% 13.6% 14.4% van segments, and largely serve as a family vehicle. In 2011 the luxury CUV classification was nearly at 60 percent the size of the Hyundai Santa Fe 8.0% 7.2% 9.6% non-luxury class. Hyundai Tucson 3.3% 8.1% 9.0%

The CUV category continues to see Ford Edge 7.9% 8.8% 8.3% growth of 36% from 2009 and 46% GMC Acadia 7.0% 7.7% 6.5% from 2008. Murano 8.4% 8.2% 6.1%

Honda Element 4.7% 3.5% 4.3% Among the standard CUV vehicles, the Chevrolet Equinox leads for the third consecutive year, and although it is a popular, well Journey 0.6% 3.6% 3.9% established vehicle, it saw some new contenders in 2011. Among the most significant growth in the segment were the Hyundai Jeep Compass 2.1% 2.0% 3.4% Tucson and the Dodge Journey. From 2009 to 2011, the Tucson jumped 171 percent and Journey increased 565 percent in share Mazda CX-7 4.5% 4.0% 3.3% of the CUV segment. Other significant increases were seen among the Hyundai Santa Fe and Jeep Compass, with 20 and 66 percent growth, respectively. With Ford’s continued growth and success in product quality and marketing, the Edge is expected to continue to compete with the Equinox and Tucson in the top five.

The luxury CUV segment saw 28 percent growth over 2010, and some interesting shifts in top vehicles over the past three years. the Acura MDX and Buick Enclave, which led the segment since 2009, have been bumped by the Audi Q5, which has seen over 200 percent growth compared to 2010. Audi’s larger CUV, the Q7 has also seen nearly 28 percent growth since 2009. The Infiniti EX is another one to watch for, at 4.3 percent share of segment in 2011, and less than 1 percent in 2009.

16 Jumpstart Automotive Group Insights 2010–2011 SHARE OF SHOPPING FIGURE 1.3.9 FIGURE 1.3.10 CUV, LUXURY VS. NON-LUXURY Top Luxury CUVs: Share of Shopping: Share of Segment Sedan; Luxury vs. Non-Luxury

January 2009–December 2011 January 2009–December 2011

Model 2009 2010 2011 Make luxury CUV Audi Q5 1.4% 5.8% 19.6% 36%

Acura MDX 19.6% 15.9% 13.9%

Buick Enclave 10.4% 16.0% 12.7%

BMW X5 9.7% 12.9% 7.8%

Cadillac SRX 9.0% 8.7% 6.7%

Audi Q7 5.1% 5.8% 6.5% non-luxury CUV BMW X3 5.4% 7.8% 6.4% 64%

Lincoln MKX 4.0% 5.7% 4.7%

Infiniti EX 0.2% 2.3% 4.3%

Mercedes M-Class 4.7% 5.3% 4.0%

Digital Audience 17 FIGURE 1.3.11 Share of Brand Shopping

January 2009–December 2011

CY CY Share- CY Share-Point Make % Var. % Var. 2009 2010 Point Var. 2011 Var. Acura 2.3% 2.1% -7% -0.17% 2.1% -1% -0.01% Audi 3.1% 3.1% -1% -0.04% 4.0% 29% 0.91% BMW 3.2% 3.0% -7% -0.24% 2.8% -6% -0.18% Buick 0.8% 1.1% 32% 0.27% 1.2% 7% 0.07% Cadillac 2.0% 1.5% -23% -0.45% 1.4% -4% -0.07% Chevrolet 10.8% 10.8% 0% 0.00% 10.5% -3% -0.28% 1.7% 1.7% 3% 0.05% 1.2% -32% -0.57% Dodge 3.4% 4.1% 19% 0.64% 3.7% -9% -0.36% Fiat 0.0% 0.0% 0% 0.00% 0.4% 19962% 0.38% Ford 12.5% 12.0% -5% -0.57% 13.9% 16% 1.93% GMC 2.3% 3.0% 33% 0.75% 1.7% -43% -1.31% Honda 8.4% 7.9% -5% -0.44% 8.4% 6% 0.49% Hyundai 3.1% 4.1% 34% 1.02% 5.0% 23% 0.95% Infiniti 0.8% 1.0% 34% 0.26% 1.1% 7% 0.08% Jaguar 0.4% 0.3% -24% -0.10% 0.5% 60% 0.19% Jeep 2.3% 3.1% 38% 0.86% 2.6% -16% -0.51% Kia 2.0% 2.5% 27% 0.53% 3.2% 27% 0.67% Land Rover 0.3% 0.3% 5% 0.01% 0.4% 27% 0.08% Lexus 1.5% 1.7% 16% 0.24% 1.8% 4% 0.06% Lincoln 0.8% 0.9% 8% 0.06% 0.8% -6% -0.05% Mazda 2.5% 2.6% 7% 0.16% 2.7% 4% 0.11% Mercedes-Benz 3.9% 1.4% -64% -2.47% 1.7% 23% 0.32% Mini 0.4% 0.5% 24% 0.09% 0.9% 84% 0.39% Mitsubishi 1.8% 1.8% -1% -0.02% 1.5% -18% -0.33% Nissan 6.4% 6.6% 3% 0.22% 5.5% -16% -1.08% Porsche 1.0% 1.1% 8% 0.08% 1.2% 11% 0.12% Ram 0.4% 0.8% 94% 0.39% 0.4% -51% -0.41% Saab 0.3% 0.3% -6% -0.02% 0.2% -20% -0.06% Scion 0.5% 0.6% 17% 0.08% 0.5% -8% -0.04% Smart 0.1% 0.0% -30% -0.02% 0.1% 79% 0.04% Subaru 2.0% 2.2% 13% 0.25% 2.1% -8% -0.19% Suzuki 0.4% 0.6% 36% 0.16% 0.6% -3% -0.02% Toyota 11.3% 11.0% -3% -0.35% 10.1% -8% -0.91% Volkswagen 3.4% 2.9% -14% -0.47% 3.2% 10% 0.30% Volvo 1.5% 1.6% 4% 0.06% 1.3% -14% -0.22%

18 Jumpstart Automotive Group Insights 2010–2011 FIGURE 1.3.12 Top Models in Share of Shoppers

January 2009–December 2011

2009 2010 2011 Rank Make Model Rank Make Model Rank Make Model Avg. Avg. Avg.

1 Honda Accord 2.29% 1 Honda Accord 2.03% 1 2.59%

2 Honda Civic 2.21% 2 Honda Civic 1.97% 2 Honda Civic 2.05%

3 Ford Mustang 2.12% 3 Ford Mustang 1.94% 3 Honda Accord 1.92%

4 Ford F-150 2.04% 4 Ford F-150 1.72% 4 Ford Focus 1.71%

5 Chevrolet Impala 1.96% 5 Toyota Camry 1.70% 5 Ford Escape 1.61%

6 Toyota Camry 1.87% 6 Chevrolet Impala 1.63% 6 Ford Explorer 1.61%

7 1.66% 7 Chevrolet Silverado 1.39% 7 Toyota Camry 1.58%

8 BMW 3-Series 1.43% 8 Nissan Altima 1.36% 8 Chevrolet Impala 1.52%

9 Nissan Altima 1.42% 9 Toyota Corolla 1.29% 9 1.48%

10 Toyota Corolla 1.41% 10 Ford Explorer 1.28% 10 Ford F-150 1.33%

Digital Audience 19

Section 2: Case Studies and White Papers 2.1 Impact Regional Purchase Intent

In-Market Digital Media Significantly Shifts Local and Regional Purchase Intent

OVERVIEW FULL STUDY Industry Problem Background

Tier II and Tier III are just beginning to scratch the surface in With automotive marketing there are typically three tiers digital media and are unsure about how effective their marketing of advertisers that are responsible for building awareness, efforts have been in the in-market space. influencing consideration and intent, and ultimately driving vehicle sales. Though responsibilities and objectives may seem Findings clear-cut, there tends to be overlap in what each tier is trying to accomplish. By advertising on third-party automotive sites: Automotive manufacturers, known as Tier I, are responsible • Studied brands grew their share of shopping by an average for establishing the brand, improving perception and creating of 23 percent during the campaign and 6 percent the demand. The regional dealer associations (RDAs), known as month following. Tier II, typically focus their marketing efforts on driving shoppers • Vehicle make traffic grew an average of 12 percent during the within a region closer to the point of purchase and driving in-market campaign and 19 percent the month following. traffic into specific dealerships (often done with retail pricing or incentive messaging). Dealers, referred to as Tier III, are tasked • Studied Tier III dealer groups increased shopping demand with representing the brand, creating a positive shopping 31 to 56 percent for the vehicles they sell after they began experience and ultimately, closing the sale. Because all parties advertising on third-party automotive sites. have the objective of growing sales, goal overlap is not Overall Takeaway necessarily a bad thing.

Tier II and Tier III marketers can impact brand consideration by advertising to a geographically targeted audience of in-market shoppers.

22 Jumpstart Automotive Group Insights 2010–2011 Study Objectives

Third-party automotive websites provide an opportunity for • Determine whether Tier II and III advertising can support automotive marketers to communicate a message to a highly Tier I efforts in driving incremental consideration for a brand targeted audience of consumers who are at various stages of the in a specific market or region. vehicle shopping process. The brand manufacturers have long • Demonstrate the relationship between variances in traffic been taking advantage of this space and employing various on in-market sites and advertising campaigns that were strategies to drive consideration of their brand, convert geographically targeted to Jumpstart’s audience. competitive shoppers and retain loyal ones. Because the manufacturer has such broad coverage of this audience, there • Prove the value of in-market media for Tier II and Tier III by is a looming question in the industry of how relevant it is for showing positive shopping behaviors resulting from effective Tier II and III marketers to maintain a presence on third-party media campaigns. sites and spend a portion of their budgets in this space. If it is in • Demonstrate that local market advertising presence provides fact important for them to be there, what is the most cohesive additional support to the Tier I advertising messages on strategy for all three to use their marketing dollars most third-party sites in effectively driving consumers closer effectively? The latter is unfortunately still dependent on too to purchase. many variables to have just one answer. The question of the relevancy and value of Tier II and III advertising on third-party sites however, has been confirmed by the positive results from this study. KEY HIGHLIGHTS Share of Shoppers To address these industry concerns, Jumpstart embarked on a study to understand the impact that RDAs and dealer Brands were able to grow their share of market by an average marketers have had on brand consideration when advertising of 23 percent during the campaign and sustained growth by an to a geographically targeted audience of in-market shoppers. additional 6 percent in the month after. The study has been outlined based on the following: Traffic Growth Jumpstart’s Solution Make traffic on third-party sites grew an average of 12 percent Provide regional and local advertisers market-level analyses of during the month of an in-market campaign and another 19 how their campaigns have impacted automotive shopping based percent in the month following. on trends among Jumpstart’s audience of in-market shoppers. Shopping Demand Note: Analyses were performed across Tier II and Tier III campaigns in which Tier I was also advertising in the Tier III groups recognized average demand growth in a region in-market space. ranging from 31 to 56 percent after they began advertising on third-party automotive sites.

Case Studies and White Papers 23 Brand Consideration Can Be Influenced on a Results Market Level

The following section will demonstrate in-depth results as to In evaluating brand impact in a market or region Jumpstart how Tier II and Tier III advertisers were able to influence measured brand shopping and consideration through unique shopping in a specific market or region. users, pageviews, brand share and leads or quote requests. The analysis compared these metrics during and after a campaign Each campaign was measured during a period in which Tier I versus the period before an RDA or dealer was advertising across was also advertising in the in-market space. What’s also Jumpstart sites. noteworthy is that the Tier II and III marketers only had geographic-targeting applied to their campaigns (did not target Results across all campaigns showed impressive growth in by segment, make or model specific pages), while Tier I consumers shopping for various vehicle brands during a period purchased more specific targeting. in which the regional marketers were supporting the brand with local messaging.

When looking specifically at unique users, the campaigns measured drove an average incremental growth of 12 percent in shoppers that were viewing brand or model pages on Jumpstart sites.

To control for overall market growth, Jumpstart weighed the AVERAGE LIFTpercent IN growth UNIQUE of brand shoppers USERS against the growth in the DURING VS.market. PRE In-CAMP the brand exampleAIGN below, PERIODS a luxury import brand’s shopper volume grew by 11 percent in one month of a regional campaign in Washington D.C. when the market only grew by 5 August 2008–July 2009percent. Brand pageviews for the import also grew faster than the market at 14 percent during the same time period. FIGURE 2.1.1 25% Average Lift in Unique +19.6% 12% average lift in unique Users During vs. visitors across all regional Pre-Campaign Periods 20% campaigns evaluated

August 2008–July 2009 +12.6% 15% +11% +9.3%

10% +6.2%

5%

0%

advertiser advertiser advertiser advertiser advertiser A B C D E

24 Jumpstart Automotive Group Insights 2010–2011 Moving the Needle by Capturing Market Share FIGURE 2.1.2 Another way in which the success of regional marketers can Luxury Brand Shoppers Grow Ahead be measuredLUXURY is by BRAND viewing the SHOPPERS impact of their GROW advertising AHEAD on a ofLUXURY Washington, BRAND SHOPPERS DC Market GROW AHEAD brand’sOF share WASHINGTON, in that specific market.DC MARKET The variance in its share is OF WASHINGTON, DC MARKET then compared to key competitors in the market. Similar to the November–December 2009 resultsN foundovember– inDecember growth 2008in shoppers, the average share gained by November–December 2008 brands during regional advertising campaigns14% was an impressive +14% 15% 23 percent. 15%

11% Some brands successfully achieved a near 40 percent growth +11% in share of market during the period when a local or regional 10% message supported the national brand message. 10%

6% +6% 5% +5%

5% 5% VARIANCE IN SHARE OF SHOPPERS IN

0% DMA DURING VS. PRE-CAMPAIGN PERIOD 0% % change (unique users) % change (pageviews) luxury brand shoppers all auto shoppers Nov–Dec ‘08 Nov–Dec ‘08

luxury brand shoppers all auto shoppers August 2008–July 2009 % change % change in Washington, DC in Washington, DC unique users pageviews

FIGURE 2.1.3 45% Variance in Share of +38.6% +38.9% Shoppers in DMA During 40% 23% average lift in brand share vs. Pre-Campaign Period of shoppers across all regional 35% campaigns evaluated

August 2008–July 2009 30%

25% +17.9%

20%

15% +5.7% 10% +4.2%

5%

0% advertiser advertiser advertiser advertiser advertiser A B C D E

Case Studies and White Papers 25 Honda RDA Doubles Share of Market

In October 2008, a Honda dealer association began testing Honda realized exemplary results from its test campaign. In just in-market digital media in the Southeast. Although the one month it was able to grow its share of market by over 100 automotive brand was advertising on brand and model pages, percent. Prior to the dealer association’s advertising campaign the RDA was aiming to grow Honda’s share in the market and (initiated in the second week of October and running through subsequently gain consideration from competitive shoppers the end of November), Honda was hovering around 5 percent such as Toyota, Nissan and Mazda. During the test period, none share of market, falling slightly behind both Toyota and Nissan. of the other brands had support in the same region on In just six weeks of advertising, its share jumped to over 10 Jumpstart’s sites. percent and pushed past both competitors to hold the highest share among all three. In addition to leaping ahead during its HONDA GROWSadvertising SHAREperiod, Honda IN was SOUTHEAST able to sustain its position MARKET in the WITH IN-MARKETmonth following DISPL its in-marketAY CAMP digital test.AIGN

October–November 2008

FIGURE 2.1.4 12% 10.2% Honda Grows Share 10% in Southeast Market 10% with In-Market

Display Campaign 8%

5.4% September–December 2008 4.9% 6%

4%

2%

0% Sep Oct Nov Dec

2008

Honda Toyota Nissan Mazda

26 Jumpstart Automotive Group Insights 2010–2011 Dealer Group’s Successful Demand Creation

In another example, Jumpstart evaluated how a large dealer market but when the dealer’s digital display campaigns began in group was able to influence shopping consideration for multiple May, each brand started to see growth in shopping demand. By makes in a region. The dealer group covered the Northern the end of May, Honda started to outpace the market demand California region and was advertising retail messages for Toyota, and soon, Toyota and Nissan followed. In just two months of Honda and Nissan beginning in May 2009. advertising, each of the brands recognized significant growth in share of shoppers in Northern California ranging from 31 to 56 For the analysis, Jumpstart indexed brand shopping demand percent at a time when the market only grew by 8 percent. using traffic and engagement metrics across shoppers in the region. Prior to May, all three brands were performing below the DEALER GROUP IMPACTS BRANDS SHOPPED ON JUMPSTART WEBSITES IN NORTHERN CALIFORNIA

February–July 2009

FIGURE 2.1.5 Campaign launch 135 May 2009

Dealer Group Impacts Average shopping demand growth Brands Shopped in 125 (vs. 2 months prior to campaign) Toyota +56% Northern California Honda +31% 115 Nissan +35% February–July 2009 N. California Market +8% 105

95

85 SHOPPING DEMAND INDEX

75

65

Feb Mar Apr May Jun Jul

2009

Honda Toyota Nissan N. California Market

Case Studies and White Papers 27 Purchase Intent Strengthened Through Lead Growth

A final metric that was incorporated into this study are the brand Toyota struggled to move ahead of Honda throughout its leads submitted across Jumpstart’s sites. Brand leads are quote campaign, there was significant growth in leads from the requests that consumers would submit for specific vehicles. beginning to end of its campaign of 60 percent (from 13 to While many consumers never submit quote requests online, 20.8 percent). Jumpstart has found that regionally focused display campaigns have driven larger volumes of leads either during or directly The example above demonstrates how Toyota’s share of leads following an in-market campaign. submitted on Jumpstart sites grew 52 percent after the first month of advertising in the Los Angeles market. That growth One of the brands evaluated was Toyota in the Los Angeles was sustained through May when it saw a slight drop-off, but market. The dealer association began its first test of digital then picked back up to jump ahead 42 percent from May to display advertising in the market in March 2009. Although June 2009. SHARE OF LEADS SUBMITTED IN THE LOS ANGELES MARKET

February–July 2009

FIGURE 2.1.6 Share of Leads 25% Submitted in the Los Angeles Market 20%

February–July 2009 15%

10%

5%

0% Feb Mar Apr May Jun Jul

2009

Toyota Honda Nissan Chevrolet Ford

28 Jumpstart Automotive Group Insights 2010–2011 Summary and Conclusions Methodology

Because regional and local automotive marketers are still trying • Review regional traffic trends across Jumpstart publisher to determine the most effective way to evaluate and engage websites (average unique users, pageviews and pageviews with third-party in-market media, working with these publisher per user) in 2008 and 2009 to determine seasonal patterns. partners will be critical in understanding advertising impact. This • Examine multiple brands’ traffic trends and market share in is not to suggest that marketer-side metrics aren’t valuable in specific market or region (average unique users, pageviews analyzing a campaign, but measuring the shopping behaviors on and pageviews per user) across Jumpstart sites for sufficient third-party automotive websites and the demand creation that’s periods of time prior to and following advertising campaigns occurring in the marketplace will add depth to the metrics for to determine variance during advertising flight. success. Measuring these behaviors will also provide a competitive perspective across a broad audience of automotive • Index brand behaviors to measure shopping demand in a shoppers that client metrics alone aren’t able to provide. specific market or region and compare growth to the total market. This study unquestionably proves that Tier II and Tier III • Compare brand/model traffic in a specific market or region marketers have the ability to significantly influence shopping against key competitors’ traffic on Jumpstart sites during and behavior throughout a region or a specific local market even if after a geo-targeted campaign. Tier I is advertising to a similar audience, albeit in a more finely targeted capacity. • Identify growth in leads that were submitted by shoppers in a specific market or region across Jumpstart sites. Determine brand share against key competitors before, during and after a geo-targeted display campaign.

Case Studies and White Papers 29 2.2 Subaru’s In-Market Success Story

Subaru Leaps Ahead in Consideration Among Competitor Shoppers Through Sponsorship on Jumpstart Sites

SUMMARY The Hypothesis

Vehicle sponsorships will generate consideration for key Subaru vehicles

The Test

Timing: October 2009 Vehicle: Subaru Outback Targeting: Jumpstart crossover and wagon category shoppers

Findings

Key Publisher Metrics:

• Competitive shopper consideration grew up to 90 percent. • Outback leads on Jumpstart sites grew 162 percent while all Jumpstart leads only grew 2 percent.

Consumer Engagement via Marketer KPIs:

• Engagement with Outback retention ads grew 56 percent. • Post-click activities on Subaru’s website grew 38 percent during the month of their category sponsorship.

30 Jumpstart Automotive Group Insights 2010–2011 FULL STUDY Background

Subaru has been in the automotive spotlight for the past 18 to increase awareness of its vehicles among shoppers within months as it has swiftly and stably gained market share from a given segment, as well as to retain those who were already domestic and Asian competitors. Its success during a down considering Subaru. In mid- and late-2009, Subaru tested economy and an unprofitable automotive market has been different strategies for promoting two vehicles within its lineup– unthinkable by most manufacturers. Many factors such as the Legacy and the Outback, across Jumpstart websites. product quality, price value, dependability and niche segments The first approach was for the Legacy where Subaru employed have contributed towards this healthy growth, but there have a one-day homepage roadblock on Jumpstart sites on August 1, also been significant strides in its marketing efforts. 2009. Due to the short length of time that the Legacy When it comes to digital in-market media, where consumers are sponsorship appeared, as well as the timing coinciding with the actively shopping for or researching their next vehicle purchase U.S. Government run CARS (Cash for Clunkers) program, this on third-party automotive websites, automotive brands have study will focus more heavily on the second campaign, Subaru the ability to reach consumers through various stages of their Outback. For the full month of October 2009, Subaru Outback shopping process. In fact, Jumpstart has conducted a number sponsored Jumpstart vehicle category pages for crossovers and of studies showing success in growing consideration for a brand wagons and realized significant success in gaining consideration among segment shoppers, including among shoppers that were from in-market shoppers within the category. viewing specific competitive vehicles. Additionally, Jumpstart has found that only 50 percent of consumers coming to these sites Study Objectives have decided which vehicle category they are considering, and only 14 percent are sure of the specific model they’d like to • Observe publisher metrics such as traffic, share of shopping, purchase. The opportunity to influence that decision is abundant competitive activity, cross- and reverse cross-shopping data and allows advertisers to directly reach an in-market shopper to determine the impact that Subaru’s sponsorships had on without advertising waste. consumer shopping activity. • Evaluate marketer KPIs for retention campaign to determine Though Subaru has consistently maintained a presence on if the growth in consideration from the sponsorship resulted third-party automotive websites through the purchase of vehicle in increased engagement from consumers who landed on make and model pages, in 2009 it began exploring other the marketer’s site after viewing campaign. upper-funnel or higher awareness placements such as homepage or vehicle category sponsorships. With a number of accolades won over the past two years, the goal for Subaru was

Case Studies and White Papers 31 KEY HIGHLIGHTS Traffic Leads submitted

• Unique visitors shopping the Subaru Outback increased 24 • Outback’s leads submitted by Jumpstart shoppers grew percent from September to October, when the sponsorship 162 percent from September to October, while all leads was live. submitted only grew by approximately 2 percent over that • Following the end of the campaign, Outback shopping same time period. dropped 3 percent in unique visitors and 9 percent • Subaru’s leads overall were up 63 percent in share and 84 in pageviews. percent in volume in October after having been down nearly 70 percent the prior month. Share of Shoppers Marketer metrics • Outback’s share of wagon and crossover shoppers grew 14 percent during the month of their sponsorship. • Outback’s campaign was successful not only in gaining • During the same period some competitors saw decreases consideration of shoppers, but also in driving them to model of 5 to 11 percent. pages and increasing engagement with ads on those pages of up to 56 percent. Cross- and Reverse Cross-Shopping Activity • Post-click activities from Subaru’s retention ads increased • Competitive shoppers’ consideration of the Outback 38 percent during the month of its category sponsorship. increased from 6 to 90 percent from September to October. (Outback reverse cross-shopping). • During this same period some competitors fell in consideration of Outback shoppers, namely Volvo XC70 (down 9 percent) and Volkswagen Passat (down 28 percent). (Outback cross-shopping).

32 Jumpstart Automotive Group Insights 2010–2011 Traffic Growth

During the entire month of October 2009 Subaru Outback Over this time period, a number of key competitors saw a sponsored Jumpstart’s vehicle category pages for crossovers decrease in traffic ranging from 4 to 21 percent. As the market and wagons touting the 2010 vehicle being “Newly Re-designed has been shifting from sedans and SUVs to crossovers, Jumpstart with More Room for Adventure.” The sponsorship resulted in has found similar trends in shopping interest to the crossover Outback realizing a 24 percent increase in unique visitors to its category. Overall visits to wagon and crossover pages on model pages. The growth in consideration from shoppers did Jumpstart sites were up 8 percent during October compared not result in growth in the number of pages viewed during to September. this period. OUTBACK TRAFFIC ON JUMPSTART SITES

September–November 2009

FIGURE 2.2.1

Subaru Outback Unique 45,000 Visitor Traffic +24% in unique visitors 40,000

September–November 2009 35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 Sep Oct Nov

2009

Case Studies and White Papers 33 Share of Segment Shoppers

When evaluating a vehicle against competitors in the segment it comparison. The Outback was able to grow its share nearly 14.5 is important to gauge which vehicles hold the highest share and percent in October, while all key competitors (with the exception what causes the fluctuation. To understand the impact that of Volvo XC70) dropped from nearly 5 to 27 percent in share.

Outback’s sponsorship had on the share of wagon and crossover G R A P H B shoppers, the top cross-shopped vehicles were used as a

SHARE OF WAGON/CROSSOVER

September–October 2009

FIGURE 2.2.2 30%

Share of Wagon/Crossover 27.1% Shoppers 25% 22.4% September–October 2009 20%

14.4% 15% 13.7%

9.9% 10% 8.8% 7.8% 6.8% 4.7% 5% 3.3% 3.4% 3.4%

0% Subaru Volvo VW Chevrolet Honda Hyundai Outback XC70 Passat Equinox CR-V Santa Fe

Sep ‘09 Oct ‘09

34 Jumpstart Automotive Group Insights 2010–2011 With Outback typically targeting more of a niche market, the considering the entire category only grew at 8 percent. Even growth in consideration as seen in the share of Jumpstart more compelling is the comparison of the Outback’s growth in shoppers in a broader category is astounding. Being a low- share vs. a higher volume and more mainstream vehicle such as volume vehicle in terms of sales (ca. 86,000 in 2009,V WardsARIANCE the IN Honda SHARE CR-V (sales OF of ca. 191,000 in 2009), which dropped AutoInfoBank, January 2010), Outback’s nearly 14.5 WApercentGON/CROSSOVER 17 percent in consideration SHOPPERS during the same period. growth in share demonstrates significant success when

September–October 2009

FIGURE 2.2.3 14.4%

Variance in Share of Wagon/ 15% Crossover Shoppers Wagon/crossover 10% category grew 8% September–October 2009 2.2% 5%

0%

-5%

-10% -4.9%

-15% -11.2%

-20% -17.1% -25% -26.5% -30% Subaru Volvo Chevrolet VW Honda Hyundai Outback XC70 Equinox Passat CR-V Santa Fe

Case Studies and White Papers 35 Growth in Consideration among Competitive Shoppers

Similar to the competitive set that was viewed in gauging the that category sponsorships are effective in driving increased impact on share of segment shoppers, cross-shopping activity is consideration from shoppers within the segment that have used to gauge shifts in consideration among competitive not yet determined a specific model for their next purchase. shoppers. Cross-shopping samples the consumers that began their shopping with the Subaru Outback, and then measures the In this case, competitive shoppers who also viewed the Subaru frequency with which they looked at competitors. For example, Outback grew at an average rate of 39 percent during the month in this analysis Outback shoppers’ consideration for key of its sponsorship in October 2009. Among specific competitors competitors the Volvo XC70 and Volkswagen Passat dropped 9 such as Toyota Venza and Volkswagen Tiguan, consideration and 28 percent respectively when Outback employed its grew at astounding rates of 89 and 83 percent respectively. category sponsorship on Jumpstart sites. Although Outback’s share of segment shoppers grew against the Another compelling way to view this data is by looking at the Volkswagen Passat and Hyundai Santa Fe, the frequency with reverse of this concept. Reverse cross-shopping evaluates the which these competitors’ shoppers were viewing the Outback frequency at which competitive shoppers are viewing the did not increase. Consideration against higher-volume vehicles Outback (vehicle shopping or research originates with a such as the Chevrolet Equinox and Honda CRV grew at competitive model). If you look at the flipside ofREVERSE this analysis, CROSS-successfulSHOPPING rates of 53 and 54 percent. Jumpstart has found convincing results to supportFOR the belief SUBARU OUTBACK

September–October 2009

FIGURE 2.2.4 +6% Reverse Cross-Shopping 15% 13.3% +39% average lift in for Subaru Outback 12.6% reverse cross-shopping

September–October 2009 10%

-23% +89% +72% +83% +54% 5.7% 5.1% 5.5% -22% 5% +53% 4.4% 4.2% 3.9% 3.2% 3.3% 2.7% 2.6% 2.3% 2.6% 2.5% 1.7%

0%

Volvo VW Toyota Chevrolet Mazda VW Honda Hyundai XC70 Passat Venzo Equinox CX-7 Tiguan CR-V Santa Fe

Sep ‘09 Oct ‘09

36 Jumpstart Automotive Group Insights 2010–2011 Increase in Lead Volume and Share

For the first time in 2009, Subaru Outback jumped to the top In addition to measuring the leads that were submitted on of lead submittals with the highest share among all vehicles in Jumpstart sites, Subaru asked that Jumpstart evaluate the October. Not only did it achieve the highest leads, its growth conversion of wholesale leads that were purchased from in share was 158 percent from September. Measuring volume Jumpstart during this period. In October 2009, the adjusted 90 of leads, Outback saw growth of 162 percent when total leads day close rate was 18 percent above Subaru’s national close submitted across Jumpstart sites grew by only 1.7 percent. rates. From October through December, these rates were an average of 20 percent above the national level. Although Outback’s sponsorship ran through the end of October, its growth continued into November with another 23 percent increase in lead volume and a 22 percent increase in share. Outback maintained the highest lead volume and shareSHARE OF LEADS SUBMITTED of leads for the second consecutive month across all vehicles on Jumpstart sites. ON JUMPSTART SITES

September–November 2009

FIGURE 2.2.5

7% Share of Leads Submitted on +158%

Jumpstart Sites 6% -28% -28% September–November 2009 5%

4%

3%

2% +31% +152% +72% -2% 1%

0% Subaru Honda Hyundai Chevrolet VW Mazda Toyota Outback CR-V Santa Fe Equinox Tiguan CX-7 Venza

Sep ‘09 Oct ‘09 Nov ‘09

Case Studies and White Papers 37 Marketer Metrics

Over time, Jumpstart has taken the position that there is evident With an increase in unique users, total ad impressions delivered value in advertisers utilizing both third party automotive site on model pages jumped 45 percent from September to October, data and marketer metrics (KPIs) to evaluate in-market media and though the growth slowed down drastically, Outback success. Bringing this holistic approach to life, Subaru provided enjoyed another 6 percent growth in impressions in November. Jumpstart with access to its post-impression and click activities Although knowing that clicks on an ad don’t necessarily translate in order for this study to encompass the broader view of shopper into purchase intent, Jumpstart found that a 56 percent increase activity following campaign exposure. in clicks also drove 38 percent growth in post-click activities such as “Request a Quote,” “Schedule a Test Drive,” “View A number of factors on Subaru Outback pages were positively Inventory,” and “View Special Offers.” Outback’s sponsorship influenced by the crossover/wagon sponsorship campaign that clearly helped drive consideration for the vehicle and drove ran in October 2009. Not only was the campaign successful in consumers further down the purchase funnel as seen in both driving an incremental 24 percent of shoppers to Outback the publisher and marketer metrics. pages, but the engagement of Outback shoppers with the advertising on those pages increased significantly. SUBARU OUTBACK RETENTION PERFORMANCE

September–November 2009

FIGURE 2.2.6 +56% 60% +53% Subaru Outback Retention +49% +45% Performance 50% +38% September–October 2009 40%

30% +19% +16% 20% +12%

10%

0%

total impressions total clicks post-click activities total site activities

% var. % var. Sep–Oct ‘09 Sep–Nov ‘09

38 Jumpstart Automotive Group Insights 2010–2011 Summary and Conclusions Methodology

In evaluating each of these metrics, publisher- and marketer- • Review Subaru monthly and daily traffic trends across side, the upper funnel advertising on Jumpstart sites was Jumpstart publisher websites (average unique users, effective in increasing awareness and consideration of the pageviews and pageviews per User) in 2009 to determine vehicles. As a brief recap of success measures, the following seasonal patterns. results were achieved during the month of their • Examine multiple competitive brands’ traffic trends (average category sponsorship: unique users, pageviews and pageviews per user) across • Driving awareness: 24 percent growth in unique visitors Jumpstart sites for sufficient periods of time prior to and shopping the Subaru Outback. following advertising campaigns to determine variance during advertising flight. • Increasing Consideration: 39 percent average lift in consideration among competitive shoppers. • Evaluate brand/model traffic trends against vehicle segment trends to determine average variance in share of segment • Gaining share within segment: 14.4 percent growth in shoppers during awareness advertising flight. Outback’s share of the crossover/wagon segment. • Compare brand/model traffic against key competitors’ traffic • Increasing leads and lead quality: 162 percent increase in on Jumpstart sites during awareness campaign. lead volume and 158 percent growth in share. • Identify any positive changes in cross- and reverse cross- • Driving lower funnel activities: 38 percent growth in post- shopping data as a result of the consideration generated click activities on marketer website. from awareness advertising. • Analyze variance in vehicle lead volume and share of leads submitted on Jumpstart sites for brands or vehicles evaluated in the study. • Evaluate key performance indicators (KPIs) provided by client to determine the impact awareness campaign had on marketer metrics from retention campaign. • Analyze conversion rates from client on lead submittals to determine the impact of awareness campaign on lead quality and close rates.

Case Studies and White Papers 39 Subaru Legacy Homepage Roadblock Results

August 2009 was a difficult month to gauge advertising When comparing the Legacy’s one-day traffic on August 1st effectiveness across the entire industry due to the timing of the to the prior four Saturdays in July, an average weekly growth U.S. government CARS program. As many remember, the of 20 percent was realized. The greatest lift was found when program not only spurred sales, it increased sales at a higher evaluating the same week in July, where Legacy traffic grew volume than was ever anticipated, causing the government to 50 percent. Due to the limited timeframe of this campaign, extend the program through the end of August. That being said, this success was not sustained enough throughout the month the Legacy’s one-day sponsorship on Saturday, August 1, 2009 of August to impact the vehicles share of sedan shoppers on saw some successes believed to be the result of its advertising Jumpstart sites. efforts rather than the state of the market. SUBARU LEGACY TRAFFIC GROWTH

Saturday, August 1, 2009 vs. prior four Saturdays

+50% FIGURE 2.2.7 50% Subaru Legacy

Traffic Growth Legacy grew at an average 40% weekly rate of 20% compared to the prior four weeks when they Saturday, August 1, 2009 vs. prior four Saturdays ran their one-day roadblock on Jumpstart websites 30%

20% +13% +13%

+5% 10%

0% -1 wk -2 wk -3 wk -4 wk

40 Jumpstart Automotive Group Insights 2010–2011

Section 3: Automotive Marketing Insights 3.1 Highlights of Super Bowl 2010 Automotive Advertising ROI

March 4, 2010

To determine automotive advertising’s return on investment gained at approximately $255,000 for the Sorento, with an during this year’s Super Bowl, Jumpstart analyzed the model- average three week increase in share among automotive specific growth in share among automotive shoppers across shoppers of 19.6 percent, the second highest increase in the 11 automotive shopping websites and the estimated price study. Hyundai paid the second lowest amount of approximately each manufacturer paid for every percent in share gained. $336,000 for every percent of market share gained for the The analysis was performed using an average assumed total Sonata, while experiencing the highest average three week ad dollars spent by each of the automakers on the Big Game, increase of share among automotive shoppers at 22.3 percent. conducted over three weeks from February 7 to On the other hand, Audi’s market share among automotive February 28, 2010. shoppers dipped half a percent even after its approximated $5 million media buy. Based on the study, which used an assumed benchmark average of $2.5 million per 30-seconds of Super Bowl in-game air time, Kia spent the lowest amount for every percent of market share

FIGURE 3.1.1 Results of the Model-Specific Analysis

Make Model Estimated 2010 Average 3-Week Approximate Price Super Bowl Growth Among per % of Share Advertising Expense Automotive Shoppers Gained

Kia Sorento $5.0M 19.6% $255K

Hyundai Sonata $7.5M 22.3% $336K

Dodge Charger $5.0M 10.4% $480K

Audi A3 $5.0M -0.5% $5M

44 Jumpstart Automotive Group Insights 2010–2011 “Quantifying Super Bowl ads is difficult for automotive the Hyundai Sonata, the Ka Sorento and the Dodge Charger saw advertisers since consumers don’t typically wake up Monday the greatest lifts in share among automotive shoppers at 28.7, morning and purchase the automotive they saw in an ad.” said 14.7 and 9.8 percent, respectively. Of all the models featured Joe Kyriakoza, VP of Strategic Insights at Jumpstart. “Most of the during the Super Bowl, the Kia Sorento was the only vehicle that companies that spent the cash enjoyed an increase in share that, saw continued growth in automotive shopper market share into at least over the last three weeks, demonstrates positive ROI the second and third weeks of February 2010. against their investment.” Manufacturers with Super Bowl ads that were not part of the Kyriakoza, an automotive marketing and brand expert, says the three-week Jumpstart analysis included Volkswagen, Honda and Jumpstart analysis is intended to help automotive marketers Acura, due to a lack of model-specific messaging or data. For develop a greater understanding of how offline media, especially example, Volkswagen’s “Punch Dub” ad focused on the overall broad-reaching events like the Super Bowl, impact true brand, not on specific Volkswagen products, while the Acura shopping behavior and brand consideration. ZDX coupe concept ad and the Honda Crosstour ad featured new-to-market vehicles that lacked the historical shopping data The study further reveals that in the first week following the required for proper analysis. However, Jumpstart did evaluate Super Bowl all the models featured during the Super Bowl, overall brand performance for Volkswagen, Acura and Honda for the day following the Super Bowl, with all three brands recognizing an increase in market share among automotive shoppers of 10.8, 10.5 and 4.8 percent, respectively, from The Kia Sorento was February 7 to 8, 2010. the only vehicle that The three week analysis was performed across Jumpstart’s automotive websites. Jumpstart’s 2010 online audience consists saw continued growth of a monthly average of 12 million unique automotive shoppers and enthusiasts across all web properties, with each vehicle’s in automotive shopper brand share calculated by unique visitors to its brand pages market share into the versus the total audience. Jumpstart has performed numerous analyses that demonstrate that brand consideration can second and third weeks be influenced by online and offline factors such as events, of February 2010. sponsorships, launches, pricing incentives and editorial features.

Automotive Marketing Insights 45 3.2 Super Bowl 2011 Advertising Generates Strong ROI for Chevrolet, Mini, Kia and Volkswagen

March 23, 2011

Jumpstart’s second annual Super Bowl automotive advertiser • Kia spent approximately $81,000 for every percent of market ROI study analyzes the return on investment among this year’s share gained for the Optima, while experiencing the highest Super Bowl automotive advertisers, with Chevrolet, Mini, Kia and average increase in share among automotive shoppers at 74 Volkswagen taking top billing among the 10 manufacturers that percent. During last year’s Super Bowl, Kia spent the lowest advertised during the Big Game. amount of approximately $255,000 for every percent market share gained for its Sorento. The Jumpstart study examined model-specific growth in share among automotive shoppers across 14 automotive shopping • Volkswagen rounded out the top five at approximately websites with over 14 million monthly visitors and the estimated $104,000 for every percent of market share gained, with an price each manufacturer paid for every percent in share gained. average increase in share among car shoppers of 42 percent The analysis was based on average assumed total ad dollars for the Beetle. spent by each of the automakers during the Super Bowl.

The study was conducted over a six-week period beginning three weeks prior to the Super Bowl, to establish benchmark “The overriding theme is metrics for the automotive brands slated to run spots during the game, and then extended three weeks post-Super Bowl, to that, during our extended better understand the enduring effects of the large investments that come with Super Bowl advertising. analysis including pre- and

The study, which used an assumed average of $2.8 to 3 million post-Super Bowl metrics, per 30-seconds of Super Bowl in-game air time revealed: this year’s Big Game ads • Chevrolet spent the lowest amount for every percent of have had an enduring market share gained at approximately $65,000 for its Silverado, and just slightly more than the number two effect on automotive finisher at $78,000 for its Volt, with an average increase in share among automotive shoppers of 46 and 39 shopping growth for a percent, respectively. handful of vehicles.” • BMW’s Mini brand spent approximately $68,000 for every percent of market share gained, with an average increase in share among automotive shoppers of 44 percent for its Countryman.

46 Jumpstart Automotive Group Insights 2010–2011 said Joe Kyriakoza, Jumpstart’s Vice President of Product and growth in market share likely fell victim to a Super Bowl that Performance Strategy. “While most of the manufacturers was heavy on automotive ads, allowing only a few to truly experienced a positive ROI against their investment, Chevrolet, cut through an event that already boasts an abundance of Mini, Kia and Volkswagen significantly outdistanced the rest of advertising messages. the pack. The automotive vertical was crowded with 15 different vehicle messages throughout the game, so it’s not unusual that The six-week analysis was performed across Jumpstart’s only a third of them would break through.” automotive websites. Jumpstart’s online audience consists of a monthly average of 14.2 million unique automotive shoppers Kyriakoza, an automotive marketing and brand expert, says the and enthusiasts across all web properties, with each automotive Jumpstart analysis is intended to help automotive marketers brand’s share calculated by unique visitors to its brand pages vs. develop a greater understanding of how offline media, especially the total audience. Jumpstart has performed numerous analyses broad-reaching events like the Super Bowl, impact true shopping that demonstrate that brand consideration can be influenced by behavior and brand consideration. online and offline factors such as events, sponsorships, launches, pricing incentives and editorial features. The study further revealed that manufacturers like Audi, Hyundai and Mercedes-Benz that struggled to drive similar sustained

FIGURE 3.2.1 Results of the Jumpstart 2011 Super Bowl Automotive Advertiser ROI Study

Make Model Estimated 2011 Average 3-Week Approximate Price per Super Bowl Growth Among Car % of Share Gained Advertising Expense Shoppers

Chevrolet Silverado $3M 46% $65K

Mini Countryman $3M 44% $68K

Chevrolet Volt $3M 39% $78K

Kia Optima $6M 74% $81K

Volkswagen Beetle $3M 29% $104K

Automotive Marketing Insights 47 3.3 Small Car Shopping Growth: Pent-Up Demand or Just Window Shopping?

September 13, 2010

The compact segment has seen its share of ups and downs in More recently, over 330,000 compacts were sold last August, the past few years. Back when gas prices were above four mostly as a result of the government CARS, or Cash-for- dollars in the summer of 2008, interest in compact vehicles—or Clunkers, program. Compacts were prevalent for the program anything that consumed less fuel—was thriving and improved because nearly all of them met the fuel efficiency standards set sales of these vehicles followed. In fact Polk recently confirmed to qualify for the discount. This past August, understandably that the subcompact category (or “lower small”) more than only about half as many compacts left dealer lots. doubled from 2005 to 2008 in sales of vehicles like the Nissan Versa and . Despite the nearly 50 percent drop in sales from August 2009 versus August 2010, compact sales volume is up 6 percent this When oil costs normalized, so did consumers’ eagerness to year (excluding August). What’s more telling is the staggering jump into a smaller vehicle, creating an opening for the growth in interest in small vehicles thus far this year. From April utility-driven crossovers that serve the needs of families and through August, compact share of shopping on Jumpstart outdoor enthusiasts alike—making 2009 effectively the year of properties has grown an average of 12 percent per month the crossover. Crossover traffic boomed on Jumpstart versus the year-to-date average. When comparing the same properties in 2009, capturing over 6 percent share of shopping time period last year, compact shopping share has increased by year’s end, at a growth rate of over 50 percent compared to by an average of 23 percent during the spring and its share in 2008. COMPsummer months.ACT SHARE OF SHOPPING

April–August 2009 vs. 2010 FIGURE 3.3.1

20% Compact Share of Shopping 18.8% 17.2% 17.6% 16.5% 17%

April–August 2009 vs. 2010 14.7% 14.2% 14.4% 15% 13.8% 14%

10%

5%

0% Apr May Jun Jul Aug

2009 2010

48 Jumpstart Automotive Group Insights 2010–2011 While compact sales have increased gradually this year, they As demonstrated here, shopping share has grown exponentially haven’t improved nearly at the pace of shopping.COMP The shareACT SEGMENTover the past ANAL six months.YSIS Share, of shopping for compacts in of shopping for compacts is compared to theSHARE share of actual OF SHOPPINGAugust is up VS. 21 percent SHARE versus OF the year-to-date SALES average, while vehicle sales for the compact segment. sales share is down 3 percent in August versus year-to-date.

July 2009–August 2010

FIGURE 3.3.2 20% 30% Share of Shopping vs. Cash-for-Clunkers period inflated Significant shopping 18% Share of Sales, Compact compact sales for share growth vs. 2 months in ‘09 flat share of sales 25% 16% January 2009–August 2010 14% 20% 12%

10% 15%

8%

SHARE OF SHOPPING 10% 6% SHARE OF VEHICLE SALES

4% 5% 2%

0% 0% Jan May Oct Mar Aug

2009 2010

compact share compact share of sales of shopping

Automotive Marketing Insights 49 When comparing compact shopping to the rest of the primary vehicle segments, it’s the only one with any type of significant growth in share over time, while most of the popular segments show little growth year-to-date. In August, compactCOMP shoppingARE SHARE OF SHOPPING GROWTH share improved by 87 percent versus January, VS.while OTHERsales share SEGMENTS ironically fell by 8 percent. January–August 2010

FIGURE 3.3.3 Compare Share of 30% Shopping Growth vs. 25% Other Segments

20% January–August 2010

15% Compact shopping share is up 87% in August vs. January 2010

10% SHARE OF SHOPPING—MODELS 5%

0%

Jan Feb Mar Apr May Jun Jul Aug 2010

wagon/ sedan sports hybrid SUV truck compact crossover

van

50 Jumpstart Automotive Group Insights 2010–2011 With all of these factors demonstrating a greater growth in vehicles to choose from in the segment, heftier marketing compact vehicle purchase intent, this begs the question: support (Ford Fiesta, Chevrolet Cruze, Kia Soul, etc.) and, more is the year of the compact upon us? The last four months importantly, noticeably better product. of the year could potentially drive a heftier share of market towards compacts if the current shopping demand being A segment for decades dominated by the Toyota Corolla and revealed results in later term purchases. Honda Civic now boasts new entries that deliver more car for the money, especially in the lower small and specialty groups. After a generation of desire for trucks and SUVs, Americans The trajectory in shopping for lower small (like the Ford Fiesta or could finally be warming up to smaller, more fuel efficient and Nissan Versa) and small specialty (like the Mini Cooper and Scion compact vehicles. Interestingly, fuel costs haven’t changed xB) is greater than that of the traditional favorites in the upper much, sitting below three dollars all year and familiesSUBCOMP aren’t ACTsmall AND category SPECIALIT like Civic and Corolla.Y SMALL CARS getting smaller. The wave of interest in the compact segment, traditionally divided into three buckets—upper small,TRENDING lower small STRONGER THAN UPPER SMALL, and small specialty—has been convincingly drivenSHARE by more OF SHOPPING VS. ENTIRE SEGMENT

January–August 2010

FIGURE 3.3.4 Subcompact and 23% 71% 70% Speciality Small Vehicles 21% 69%

Trending Stronger TY 19% Than Upper Small, 68% 17% 67% Share of Shopping New entries, unique styling CT & SPECIALI

A 15% driving subcompact and 66% vs. Entire Segment specialty growth UPPER SMALL 65% 13%

January–August 2010 SUBCOMP 64%

11% 63%

9% 62%

Jan Feb Mar Apr May Jun Jul Aug

2010

lower small upper subcompact speciality small

Automotive Marketing Insights 51 Advanced interior options and safety features have made inclusion of many of the features and bells and whistles on the the small vehicle more appealing, in addition to the socially vehicle. Ford is enjoying a powerful opening into the compact responsible consumer looking to make a green statement market with its 2011 models recently hitting dealerships behind without the need to pony up thousands more for a hybrid or tremendous momentum. fiddle with a new technology like EV. Interest in Fiesta, considered a subcompact or lower small, has The CAFE standards that have been set forth by the Obama soared on Jumpstart’s automotive shopping sites over the past Administration (a fleet average of 35 MPG) also have something eight months as a result of this momentum, with 65 percent to do with these developments. The domestic automakers were growth in July and 30 percent growth in August versus the not well represented in the segment in the past and many of the year-to-date average. In fact in the month of July, Fiesta was imports have gotten much more creative about their approach the most researched vehicle on Jumpstart’s properties across Share of Compact Segment Shopping since Nov. 09, when Fiesta content was first to the small vehicle with brands like Scion andavailable Kia challenging on Jumpstart properties,all categories. vs. historic It may leadersnot be ain stretch Lower toSubcompact say that Fiesta Category has traditional design standards. almost single-handedly elevated interest in an entire segment. FIESTA TRAJECTORYShare of shopping HELPS in the segment for Fiesta surpassed historic Most recently, the Ford Fiesta has set the gold standard for subcompact leaders Toyota Yaris, Nissan Versa and Honda Fit marketing excellence in the category. ThroughLIFT the company’sCOMP ACTas of SEGMENT June. Fiesta Movement program, they turned to consumers to drive November 2009–August 2010

FIGURE 3.3.5 Ford Fiesta Trajectory 9% 20% Helps Lift Compact 8% 18% 16% Segment 7% 14% 6% November 2009–August 2010 12% 5% 10% Share of Compact Segment Shopping 4% since Nov. 09, when Fiesta content was 8% first available on Jumpstart properties, vs. 3% historic leaders in Lower Small Category 6% CT SEGMENT SHARE OF SHOPPING A SHARE 2%OF SHOPPING—MODELS 4% OMP C 1% 2%

0% 0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug

2009 2010

Ford Nissan Honda Toyota Compact Fiesta Versa Fit Yaris Segment

52 Jumpstart Automotive Group Insights 2010–2011 Kia’s goofy yet effective hamster ad for the Soul has expanded had recently fallen on hard times, is showing strong consideration interest ahead of similar Scion and Nissan models. The Mini growth for its xA, xB and xD models. Cooper, considered a trailblazer in the segment, is regaining interest and consideration, while the quirky, recently launched Honda, also not one of the growth leaders in the segment, Nissan Cube is earning new shoppers. Volkswagen’s overall continues to lead in share of shopping for the lower small brand success has also translated to strong interest in the Jetta. segment with Fit capturing 21 percent, while Civic delivers in the upper small segment with 17 percent share of shopping. While Toyota is absent from the growth list aside from Prius, Yaris still commands 13 percent shopping share of the lower In the past two months, interest in compacts has seen double- small group (behind only the Honda Fit and Hyundai Accent) digit growth. Specific vehicles, including the Fiesta and Kia Soul, and the Toyota Corolla 12 percent of the upper small category have contributed heavily in the shopping gains. (second only to the Honda Civic). Toyota’s Scion brand, which

FIGURE 3.3.6 Largest Increases in Share June July August Make Model of Shopping, Compact 2010 2010 2010 Compact Segment 21% 20% 30% Summer 2010

Ford Fiesta 26% 65% 30%

Dodge Caliber 2% 18% 20%

Hyundai Elantra 4% 12% 9%

Kia Soul 14% 35% 23%

Nissan Cube -7% 6% 16%

Scion xA 14% 7% 8%

Scion xB 4% 5% 5%

Scion xD 6% 25% 29%

Volkswagen Jetta 3% 16% 19%

Mini Cooper flat 7% 19%

Toyota Prius 4.7% 4.% -1%

Automotive Marketing Insights 53 FIGURE 3.3.7

Largest Declines in Share Make Model June 2010 July 2010 August 2010 of Shopping, Compact Chevrolet Aveo -12% -32% -24% Summer 2010 Hyundai Accent -14% -23% -17%

Kia Rio -12% -24% -17%

Toyota Yaris -13% -24% -17%

Honda Fit -13% -17% -11%

Kia Spectra -11% -18% -19%

Smart Fortwo -13% -21% -18%

Nissan Sentra -4% -13% -17%

Toyota Corolla -5% -13% -15%

If trends stay true to historic patterns, the growing interest in standards in safety features, luxurious interiors and, of course, compacts during the past four months should lead to an uptick excellent fuel economy. in sales for the remainder of the year. Is this shopping growth a sign of pent-up demand or simply a lot The small vehicles available today are considerably better than of window shopping? In a very irregular economy it’s difficult to the patchwork small vehicles of yesteryear, when people were tell, but all signs point to the compact segment representing a lucky to have power windows, let alone power steering available larger share of the pie in the coming months. in a compact. Today’s models are fully equipped with the highest

54 Jumpstart Automotive Group Insights 2010–2011 Automotive Marketing Insights 55 3.4 Facebook Proves Highly Effective Outlet in the Ford Explorer Unveiling

August 23, 2010

Ford took its digital media prowess to another level when it Daily users researching the Ford Explorer more than doubled on unveiled the 2011 Explorer exclusively on Facebook, a first for a Jumpstart publisher sites on July 26, the day of the Facebook vehicle reveal, which traditionally occurs at auto shows or major unveiling, compared to the average daily usage for the month industry events. Not only did Ford demonstrate confidence in of July. The tactic proved successful in driving 104 percent social media to get its message across, but the move proved more people to Explorer pages on that last Monday in July and highly successful in encouraging aFORD high volume EXPL of in-marketORER DAILtheY effects TREND were compelling as well, as Explorer rounded out shoppers to consider the Explorer. the week with successive daily improvements in usage (versus ON JUMPSTART WEBSITESthe monthly average) of 66, 25, 13 and 8 percent by Friday.

July 2010

FIGURE 3.4.1

Ford Explorer Ford Explorer reveal on Facebook, July 26 Daily Trend +104% daily shoppers +50% engagement

July 2010

Jul 2 Jul 5 Jul 8 Jul 11 Jul 14 Jul 17 Jul 20 Jul 23 Jul 26 Jul 29 Jul 31

2010

engagement shoppers

56 Jumpstart Automotive Group Insights 2010–2011 Explorer’s growth in shopping and engagement during the While the cost associated with the Explorer reveal program Facebook reveal also led to Explorer capturing greater share of on Facebook is unknown, it was likely nowhere near the cost SUV shoppers by as much as 52 percent during the event and 31 of even one $2.5 million Super Bowl spot. This development percent the day after. After trailing —which demonstrates that while traditional media can be highly effective also recently launched a new design for 2011—for most of July, in driving consideration, a well-executed and deeply influential Explorer soared ahead of it and the rest of the competition, for online program can shift intent with more immediacy. the remainder of the month. It’s a cliché to say that times are changing, but it’s evident The type of growth in share Explorer enjoyed from its Facebook that this is a rapidly evolving industry when an automotive reveal bested improvements in share of shopping that manufacturer chooses a social media website to unveil a new manufacturers experienced the day after running one or more design over the conventional outlets. 30-second Super Bowl spots. When Jumpstart analyzed the post-game results of automotive advertisers in the 2010 Super Bowl, the average share of shopping growth was only 14 percent, less than a third of Explorer’s growthEXPL fromORER its VS. COMPETING SUVS Facebook reveal. July 2010

FIGURE 3.4.2

6.5% Ford Explorer vs. Ford Explorer reveal on 6.0% Facebook, July 26 Competing SUVs +52% SUV shopping share 5.5% July 2010 5.0%

4.5%

4.0%

3.5%

3.0%

2.5%

Jul 2 Jul 6 Jul 10 Jul 14 Jul 18 Jul 22 Jul 24 Jul 28 Jul 31

Grand Explorer Pilot Highlander 4Runner Acadia Cherokee

Automotive Marketing Insights 57 3.5 Car and Driver Launches Luxury Vehicle Advisor

October 19, 2011

Car and Driver and Jumpstart together have announced the launch of the Luxury Vehicle Advisor to help car shoppers make the best choice when buying a luxury vehicle. The online tool gives users the ability to prioritize luxury car attributes they find most important and then compare vehicles side-by-side based on their preferences.

58 Jumpstart Automotive Group Insights 2010–2011 The Car and Driver Luxury Vehicle Advisor, backed by Car and Driver’s unparalleled testing and analysis, is available at “Our Luxury Vehicle LuxuryAdvisor.CarandDriver.com and other areas of CarandDriver.com. Advisor helps shoppers

How Luxury Vehicle Advisor works: identify the ideal vehicles

• Shoppers select three of six criteria they find most important for them by boiling down in a luxury car, choosing from craftsmanship; convenience Car and Driver’s test and technology; all-weather capability; performance; handling and ride; and safety. results into a simple tool • Once shoppers choose their three most important criteria, they select their preferred price range, body style that allows shoppers to and powertrain. compare vehicles based • A total of nine luxury vehicles matching the user’s criteria are displayed, with the three best matches featured at the top on their priorities.” —Eddie of the list. Alterman, Editor-in-Chief • A shopping key is provided to highlight important features, including whether the vehicle is a Car and Driver 10Best pick, of Car and Driver. a Car and Driver Editors’ Choice pick, or if the vehicle is available as a diesel or a hybrid. • Shoppers can research and compare their top luxury car More than 200 luxury vehicles within Luxury Vehicle Advisor are matches side-by-side, including analyzing price, car reviews, rated and scored by Car and Driver’s editors in each of the six specs, features and options. categories based on instrumented testing and road tests. Then, luxury cars most closely matching a shopper’s criteria are “Shopping for a luxury car can be daunting because of the assigned a dynamic score which weights the priorities chosen. number of characteristics that may not immediately be apparent on a ten-minute test drive,” said Eddie Alterman, Editor-in-Chief Once the results are displayed, shoppers can share their picks of Car and Driver. at Facebook, Twitter or via email, or reset their selections by choosing different priority features.

Automotive Marketing Insights 59 3.6 2011 Audience Shopping and Research Trends Compared to Automotive Industry Sales, Continued Growth Expected in 2012

January 29, 2012 Despite a number of catastrophic setbacks that halted production and caused supply shortages for several high- volume brands throughout the year, the industry has succeeded in closing out 2011 with a 10 percent gain in sales volume compared to 2010. As of December, U.S. light vehicle sales reached 12.7 million units, pacing at a SAAR of 12.72 from January to December, and meeting industry estimates for 12.5 “to 12.8 million units by year-end.

In 2011, the automotive industry was shaken with destruction caused by the natural disasters that devastated Asia. The earthquake and tsunami that struck Japan in March set manufacturers back on vehicle supply for a minimum of three months. Toyota and Honda were hit especially hard, with the disasters affecting parts supply and production facilities. Additionally, Toyota faced vehicle recalls that, when coupled with the disasters, resulted in losing its position as the world’s largest automotive maker, with global sales dropping 6 percent. Honda also struggled with the effects of Thailand’s worst flooding in over 50 years, which halted production and destroyed a factory containing 1,000 completed vehicles. Dealers are not expected to be fully restocked until March 2012. Also in 2011, Honda’s top-selling vehicle in the U.S., the Civic, was under great scrutiny for the redesign of the compact version. Consequently, a vehicle that has been among the top five for years has now fallen to the bottom of the top ten cars in sales volume in the U.S. “Car buyers remain motivated by economic factors, basing their immediate purchase decisions on price and value,” says Nick Matarazzo, Jumpstart Automotive Group CEO. “But we’ve seen consumer optimism revealing itself with an increased demand for luxury car information and a growth in luxury car interest across the Jumpstart network.”

60 Jumpstart Automotive Group Insights 2010–2011 2011 Audience Shopping and Research Trends

Although natural disasters hurt many of the top manufacturers Demand is continuing to grow among more fuel efficient in 2011, others gained strength and emerged as stronger vehicles as seen among Jumpstart audience share of vehicle competitors to high-volume brands. Hyundai has been on the segments. Alternative fuels and technology (namely hybrid rise since 2008 and continued to show strong gains in sales and electric) saw a growth surge from 2010 to 2011, and now volume and shopper interest throughout the course of 2011. represent approximately 3.7 percent share of shopping on As of December, Hyundai reported two vehicles in the top ten Jumpstart sites. The hybrid category alone jumped 1.25 share for car sales volume in the U.S., with Sonata ranking seventh points, representing a 70 percent increase from 2010. with almost 226,000 units sold, and Elantra ranking tenth with over 186,000 units sold in the calendar year. Two years ago, Compacts and crossover-utility vehicles (CUVs) also benefited neither of these vehicles fell in the top ten in light vehicle car from the value and fuel efficiency trends, with both segments sales in the U.S. seeing notable increases over the prior year with growth-rates ranging from 6 to 28 percent. Specifically, compacts and luxury Similarly, Ford has been working its way towards the top-selling CUVs have increased nearly 1 percentage point in overall share brand in the U.S. since surpassing Chevrolet in 2008 and Toyota from 2010, showing that among various price points, consumers in 2010. At year-end, Ford represents almost 16 percent share are opting for more fuel efficient vehicles. At the same time, less of light vehicle sales in the U.S., beating out Chevrolet by 2 fuel efficient standard and luxury sport utility vehicles (SUVs) and percentage points and leaping four and a half points ahead of truck segments have significantly declined. Despite a slowing Toyota. Ford’s Fusion is ranked as the third top-selling car in the economy, the luxury category is on the rise with growth in U.S., while the F-Series truck and Escape SUV are the first and almost all luxury sub-segments. This growth surge indicates third-selling, respectively, in the light-truck/SUV category. 2012 won’t be completely dominated by fuel efficiency, and that there will be continued interest in design, performance The economic outlook for 2012 could lead to another and technology that is most apparent in the luxury segment. interesting year in the automotive industry. Jumpstart expects to Luxury shopping growth on Jumpstart sites is largely driven by see further growth in vehicle sales to an estimated 13.8 million Audi, now holding an impressive 4 percent share of Jumpstart units, depending on various economic factors. Employment shoppers, representing a 29 percent increase from last year. rates and consumer confidence could both potentially have an This growth brings it ahead of German competitors BMW and impact on new-vehicle sales, and although there are signs of Mercedes-Benz for the second consecutive year. Audi now leads recovery from the 2008–2009 recession, the rate of recovery in BMW (2.8 percent) by 1.2 percentage points and Mercedes-Benz the U.S. is expected to slow down. December unemployment (1.7 percent) by 2.3 percentage points. rates dropped to 8.5 percent, nearly one whole percentage point from year-ago levels of 9.4 percent. The entire labor force, Jumpstart’s analysts revealed two key but conflicting factors in however, was also down by nearly 300,000 as reported by the shopping: more aspiration vehicles returned to the top ten lists U.S. Bureau of Labor Statistics. These factors combined with the while, simultaneously, the most popular search term on the volatility in crude oil and gas prices could cause consumers to Jumpstart network was “affordable.” hold onto their vehicles longer, consider used over new, or look to alternative fuels/technology when shopping for their next “Car buyers remain motivated by economic factors, basing vehicle. Since the near drop-out of the U.S. automotive industry their immediate purchase decisions on price and value,” says in late 2008 and 2009, many studies have pointed to consumers Nick Matarazzo, Jumpstart’s CEO. “But we’ve seen consumer holding onto their vehicles longer, which begs the question of optimism revealing itself with an increased demand for luxury whether pent-up demand will cause a greater increase in new car information and a growth in luxury car interest across the vehicle sales in 2012. Jumpstart network.”

Automotive Marketing Insights 61 FIGURE 3.6.1 Share of Vehicle Category/Segment Shopping

January 2009–December 2011

Share- Share- Vehicle Category/Segment CY 2009 CY 2010 % Var. CY 2011 % Var. Point Var. Point Var. Sedan 27.0% 26.5% -2% -0.54% 26.6% 0% 0.09% Sport-Utility Vehicle (SUV) 17.4% 19.3% 11% 1.97% 16.8% -13% -2.60% Luxury Sedan 11.1% 9.5% -14% -1.58% 9.6% 1% 0.13% Cross-Utility Vehicle (CUV) 5.3% 6.8% 28% 1.48% 7.2% 6% 0.43% Sports Car Convertible 3.9% 3.8% -2% -0.09% 5.1% 32% 1.23% Compact 3.8% 4.0% 4% 0.15% 5.0% 24% 0.98% Luxury CUV 4.5% 3.1% -30% -1.35% 4.0% 28% 0.90% Wagon 3.4% 3.1% -9% -0.30% 3.9% 25% 0.78% Large Pickup 6.1% 5.9% -3% -0.17% 3.8% -36% -2.12% Hybrid 1.9% 1.8% -4% -0.08% 3.0% 70% 1.25% Luxury SUV 2.9% 3.5% 20% 0.59% 3.0% -13% -0.44% Luxury Sport 2.8% 2.6% -8% -0.21% 2.8% 8% 0.21% Van 2.9% 3.1% 9% 0.26% 2.6% -17% -0.54% Small Pickup 3.5% 3.4% -2% -0.06% 2.3% -32% -1.08% Coupe 1.3% 1.3% 3% 0.04% 1.2% -6% -0.09% Luxury Convertible 0.7% 0.6% -17% -0.12% 0.8% 22% 0.14% Electric 0.0% 0.1% 1511% 0.08% 0.6% 590% 0.49% Luxury Coupe 0.5% 0.5% 0% 0.00% 0.6% 21% 0.10% Luxury Wagon 0.5% 0.4% -14% -0.07% 0.5% 18% 0.08% Luxury Specialty 0.2% 0.2% 29% 0.05% 0.3% 36% 0.08% Large Van 0.2% 0.3% 48% 0.10% 0.3% -5% -0.02% Diesel 0.2% 0.0% -82% -0.14% 0.0% -51% -0.02%

62 Jumpstart Automotive Group Insights 2010–2011 FIGURE 3.6.2 Share of Brand Shopping

January 2009–December 2011

Share- Share- Make CY 2009 CY 2010 % Var. CY 2011 % Var. Point Var. Point Var. Acura 2.3% 2.1% -7% -0.17% 2.1% -1% -0.01% Audi 3.1% 3.1% -1% -0.04% 4.0% 29% 0.91% BMW 3.2% 3.0% -7% -0.24% 2.8% -6% -0.18% Buick 0.8% 1.1% 32% 0.27% 1.2% 7% 0.07% Cadillac 2.0% 1.5% -23% -0.45% 1.4% -4% -0.07% Chevrolet 10.8% 10.8% 0% 0.00% 10.5% -3% -0.28% Chrysler 1.7% 1.7% 3% 0.05% 1.2% -32% -0.57% Dodge 3.4% 4.1% 19% 0.64% 3.7% -9% -0.36% Fiat 0.0% 0.0% 0% 0.00% 0.4% 19962% 0.38% Ford 12.5% 12.0% -5% -0.57% 13.9% 16% 1.93% GMC 2.3% 3.0% 33% 0.75% 1.7% -43% -1.31% Honda 8.4% 7.9% -5% -0.44% 8.4% 6% 0.49% Hyundai 3.1% 4.1% 34% 1.02% 5.0% 23% 0.95% Infiniti 0.8% 1.0% 34% 0.26% 1.1% 7% 0.08% Jaguar 0.4% 0.3% -24% -0.10% 0.5% 60% 0.19% Jeep 2.3% 3.1% 38% 0.86% 2.6% -16% -0.51% Kia 2.0% 2.5% 27% 0.53% 3.2% 27% 0.67% Land Rover 0.3% 0.3% 5% 0.01% 0.4% 27% 0.08% Lexus 1.5% 1.7% 16% 0.24% 1.8% 4% 0.06% Lincoln 0.8% 0.9% 8% 0.06% 0.8% -6% -0.05% Mazda 2.5% 2.6% 7% 0.16% 2.7% 4% 0.11% Mercedes-Benz 3.9% 1.4% -64% -2.47% 1.7% 23% 0.32% Mini 0.4% 0.5% 24% 0.09% 0.9% 84% 0.39% Mitsubishi 1.8% 1.8% -1% -0.02% 1.5% -18% -0.33% Nissan 6.4% 6.6% 3% 0.22% 5.5% -16% -1.08% Porsche 1.0% 1.1% 8% 0.08% 1.2% 11% 0.12% Ram 0.4% 0.8% 94% 0.39% 0.4% -51% -0.41% Saab 0.3% 0.3% -6% -0.02% 0.2% -20% -0.06% Scion 0.5% 0.6% 17% 0.08% 0.5% -8% -0.04% Smart 0.1% 0.0% -30% -0.02% 0.1% 79% 0.04% Subaru 2.0% 2.2% 13% 0.25% 2.1% -8% -0.19% Suzuki 0.4% 0.6% 36% 0.16% 0.6% -3% -0.02% Toyota 11.3% 11.0% -3% -0.35% 10.1% -8% -0.91% Volkswagen 3.4% 2.9% -14% -0.47% 3.2% 10% 0.30% Volvo 1.5% 1.6% 4% 0.06% 1.3% -14% -0.22%

Automotive Marketing Insights 63 Top Models in Share of Jumpstart Shoppers

When looking at specific models that hold the top ten spots for and was replaced by Ford’s small, fuel efficient Escape SUV. The highest share of Jumpstart shoppers overall, the same vehicles all-new Explorer, having recently moved to a crossover platform, have continued to appear in the top three for the past three moved into sixth place in 2011, which is impressive considering years. Honda Civic, Honda Accord and Ford Mustang have the vehicle previously ranked at the bottom of the list in 2010 consistently pulled in the highest volume of shoppers and and didn’t make the top ten at all in 2009. The Focus got a lot of continued to do so in 2011. This past year however, Mustang attention in 2011 with the early release of the much-anticipated moved out of third rank up to first, holding onto an average of 2012 model, which was built on a new platform with new 2.6 percent of Jumpstart shoppers throughout the year. engines, interior and exterior design.

Particularly noteworthy are the vehicles that tend to jockey “We are seeing Ford dominate the top ten spots in share of for fourth, fifth and sixth positions. These positions have shopping with five of their vehicles in the rankings,” stated Libby continuously changed over the last several years, and this past Murad-Patel, Jumpstart’s Senior Director of Strategic Insights. year all three spots were occupied by Ford vehicles. Many high “Ford occupied only two spots in the top ten in 2009 and three volume vehicles such as the Impala, Camry and Corolla have spots in 2010. U.S. sales are mimicking the trends we’re seeing in been bumped down or off the list completely. Trucks have shopping on our sites, and that really speaks to the improvement dropped in rank as well. The Silverado fell out of the top ten and success of the Ford brand over the past three years.”

FIGURE 3.6.3 Top Models in Share of Shoppers

January 2009–December 2011

2009 2010 2011 Rank Make Model Rank Make Model Rank Make Model Avg. Avg. Avg. 1 Honda Accord 2.29% 1 Honda Accord 2.03% 1 Ford Mustang 2.59% 2 Honda Civic 2.21% 2 Honda Civic 1.97% 2 Honda Civic 2.05% 3 Ford Mustang 2.12% 3 Ford Mustang 1.94% 3 Honda Accord 1.92% 4 Ford F-150 2.04% 4 Ford F-150 1.72% 4 Ford Focus 1.71% 5 Chevrolet Impala 1.96% 5 Toyota Camry 1.70% 5 Ford Escape 1.61% 6 Toyota Camry 1.87% 6 Chevrolet Impala 1.63% 6 Ford Explorer 1.61% 7 Chevrolet Silverado 1.66% 7 Chevrolet Silverado 1.39% 7 Toyota Camry 1.58% 8 BMW 3-Series 1.43% 8 Nissan Altima 1.36% 8 Chevrolet Impala 1.52% 9 Nissan Altima 1.42% 9 Toyota Corolla 1.29% 9 Toyota Prius 1.48% 10 Toyota Corolla 1.41% 10 Ford Explorer 1.28% 10 Ford F-150 1.33%

64 Jumpstart Automotive Group Insights 2010–2011 Non-Luxury Crossover-Utility Vehicle (CUV) Compact Segment Segment

The Ford Fiesta jumped 57 percent in share of the compact Although the Chevrolet Equinox holds a strong margin against segment from 2010. This pushed competitors such as Chevrolet, the next contender for the second consecutive year, Hyundai is Volkswagen and Kia down to the bottom of the top ten in the a strong competitor and can be expected to continue gaining category. The return of the Fiat 500 spurred a lot of shopper traction in 2012 with its two popular CUV models, the Santa Fe attention in the segment as well, but fell just short of the top five and Tucson. The Nissan Murano dropped by 35 percent, moving in 2011. The desire for great small cars has also seeped over to out of the top five from 2012 and now representing only 6 brands such as Mini and Smart who, despite holding minimal percent share of the category. share of audience, are seeing growth rates upwards of 79 percent from last year. FIGURE 3.6.5 Top Models in Share of Shoppers: FIGURE 3.6.4 CUV Top Models in Share of Shoppers: Compact January 2010–December 2011

January 2010–December 2011 2010 2011 Make Model % Var. Avg. Avg. 2010 2011 Make Model % Var. Chevrolet Equinox 13.55% 14.38% 6% Avg. Avg. Hyundai Santa Fe 7.22% 9.64% 25% Ford Fiesta 7.00% 16.37% 57% Hyundai Tucson 8.09% 9.05% 11% Honda Fit 14.44% 14.30% -1% Ford Edge 8.82% 8.34% -6% Nissan Versa 7.21% 8.91% 19% GMC Acadia 7.71% 6.48% -19% 15.87% 8.90% -78% Toyota Yaris 9.82% 7.55% -30%

Automotive Marketing Insights 65 Luxury Crossover-Utility Vehicle (CUV) Segment Non-Luxury Sedan Segment

Audi is the clear winner within the luxury CUV segment, with the Despite their decline in vehicle sales this year, the Honda Civic Q5 jumping 70 percent in share from its average in 2010. Now and Accord remained leaders in share of shoppers within the representing nearly 20 percent of the category, Audi is almost 6 sedan segment in 2011 on Jumpstart sites. As the margins percentage points away from its nearest competitor, the Acura against competitors continue to shrink, the top five can be MDX. All other top five vehicles in the category have lost share anticipated to look very different in 2012, and will likely include from 2010, and only a handful of other competitors within the the Hyundai Elantra and Sonata. The Ford Fusion is expected to segment were able to grow share throughout the year. Some move up and become a closer contender with the Camry of those that saw growth were the Infiniti EX (up 48 percent), and Impala. Lincoln MKT (up 89 percent), Mercedes-Benz GLK (up 74 percent) and Acura ZDX (up 3 percent), however all of these vehicles combined only represent approximately 9 percent of FIGURE 3.6.7 the category. Top Models in Share of Shoppers: Non-Luxury Sedan

FIGURE 3.6.6 January 2010–December 2011 Top Models in Share of Shoppers: 2010 2011 Luxury CUV Make Model % Var. Avg. Avg. January 2010–December 2011 Honda Civic 7.51% 7.65% 2% Honda Accord 7.72% 7.26% -6% 2010 2011 Make Model % Var. Avg. Avg. Ford Focus 4.47% 6.38% 30% Audi Q5 5.82% 19.65% 70% Toyota Camry 6.34% 5.94% -7% Acura MDX 15.92% 13.92% -14% Chevrolet Impala 6.11% 5.79% -5% Buick Enclave 15.97% 12.66% -26% BMW X5 12.92% 7.79% -66% Cadillac SRX 8.66% 6.68% -30%

66 Jumpstart Automotive Group Insights 2010–2011 Luxury Sedan Segment Hybrid Segment

Most surprising in the luxury sedan category is the activity The Toyota Prius continues to lead the hybrid category in share; around the . Typically among the top of the entry luxury however, 2011 was the first year-over-year decrease it has seen sedans, the A4 dropped over 2 percentage points from 2010, since its inception. With the technology being widely adopted despite this being a strong year for Audi overall. While BMW among competitive brands and consumers alike, competition in has seen little growth in the 3-Series, it is still approximately the category is heating up. The lineup of vehicles using hybrid 3.5 percentage points ahead of their nearest competitor. methods for fuel efficiency is also causing this category to Larger sedans in its lineup, the 5-Series and 7-Series, have seen diversify heavily among vehicle classes. In the U.S. alone, there decreases in share that could allow competitors Audi, Acura are now over thirty vehicles available in a hybrid version, and and Mercedes-Benz to move ahead in 2012. over forty that fall into the hybrid/electric/fuel-cell vehicle classification.

FIGURE 3.6.8 Top Models in Share of Shoppers: FIGURE 3.6.9 Luxury Sedan Top Models in Share of Shoppers: Hybrid January 2010–December 2011 January 2010–December 2011 2010 2011 Make Model % Var. Avg. Avg. 2010 2011 Make Model % Var. BMW 3-Series 11.23% 11.35% 1% Avg. Avg. Acura TL 7.59% 7.85% 3% Toyota Prius 52.78% 48.59% -9% Escape Audi A4 9.44% 7.39% -28% Ford 13.65% 21.42% 36% Hybrid Cadillac CTS 5.72% 6.40% 11% Honda Insight 10.99% 6.57% -67% BMW 5-Series 4.80% 4.76% -1%

Automotive Marketing Insights 67 Electric Vehicle Segment Notable Brand and Digital Marketing Activity

Although the category is small, there is an interesting duel going Brands heavily engaged in digital activity are realizing the fruits of on between the and Nissan Leaf. Despite the Leaf their efforts. Specifically, Ford, Kia and Audi experienced success being the outright leader in shopper share in 2010, the two in 2011 due in part to their investment in creative and aggressive swapped positions in 2011 with the Volt holding 76 percent share digital marketing campaigns. of the electric segment. More than likely, the two vehicles will In 2011, the biggest winner was Ford with a nearly 2 percentage continue to compete and hold a dominant share of the segment point gain in overall share that can be attributed to the success as the category continues to grow. of two very well received vehicles: the 2011 Fiesta and the Focus. Ford now represents almost 14 percent share of Jumpstart

FIGURE 3.6.10 shoppers, with a 3.4 percentage point gain on Chevrolet (10.5 percent) and a 3.8 percentage point gain on Toyota Top Models in Share of Shoppers, (10.1 percent). Electric To no surprise, Ford has been touted for the past three years for January 2010–December 2011 its product and marketing efforts that have helped it grow its overall share of the U.S. market and gain the attention of a wide 2010 2011 generation of car shoppers. The Fiesta Movement was a lifestyle Make Model % Var. Avg. Avg. play that relied on viral marketing and interactive media campaigns with social elements to generate buzz and interest Chevrolet Volt 13.29% 76.10% 83% in the vehicle. Even before hitting dealer lots, the Fiesta was a Nissan Leaf 86.71% 17.10% -407% highly anticipated vehicle and has grown to the very top of consideration in the compact segment. In its pre-launch/launch Tesla Roadster 0.00% 6.60% N/A year, Fiesta was already holding 7 percent share of compact shoppers, and jumped an astounding 57 percent in 2011 to the top rank in compact vehicles, holding over 16 percent share of the category.

Kia has grown nearly 30 percent share in shopper interest annually for the past two years and now holds the 10th highest share of shoppers on Jumpstart sites, with 2011 sales approximately 34 percent above 2010 units. The brand’s success can be attributed to their increased digital investment during a time when many others cut back. Through their highly effective Urban Hamster campaigns, which spanned across digital and video, Kia and parent company Hyundai were able to increase awareness, consideration and eventually sales when many other brands were seeing declines in a tough economy.

68 Jumpstart Automotive Group Insights 2010–2011 Audi has moved up significantly in shopper consideration, and “We expect to see continued growth in shopping activity is the only luxury brand ranked in the top ten in terms of share among the compact segment, as there are a number of new of shoppers, holding 4 percent share at an annual growth rate vehicles on the market that are high quality with technology and of 29 percent over 2010. convenience factors built in,” said Murad-Patel of the year ahead. “Many of these new vehicles are also fuel efficient, so they can It has gained the attention of its German luxury counterparts be expected to resonate with a very broad demographic.” by bringing to market performance, quality, convenience and style–features that resonate with both younger and older Price is not expected to be the number one driver of vehicle car buying demographics. Audi utilized branding through decision-making this year. Although it will still be important, both traditional and interactive outlets to drive interest and consumers who have held onto vehicles longer will likely have consideration for its vehicles with viral campaigns on TV and more money to spend on their next vehicle, which could afford YouTube such as “Stolen Audi” and “Meet the Beckers.” Super them a step up from their last purchase. This trend could also Bowl spots such as last year’s “Luxury Prison” have revealed lead into further growth of the luxury segment, which was a fun, comical side to the brand. already on the rise in 2011.

The combination of four consecutive quarters of SAAR topping Continued Growth Expected in 2012 13 million, several highly anticipated 2012 vehicle launches, and the eagerness and optimism of consumers could result in 2011 was an unexpected year of growth and 2012 has the roughly 13.8 million new vehicles sold in 2012. potential to be even better for the automotive industry, due in part to pent-up demand as a result of consumers holding onto their vehicles longer and also in part to the 2011 depletion of inventory of many high-volume, ever-popular Asian brands– inventory depletions that may have delayed new vehicle purchases into 2012. On the other hand, the economic state is still in recovery and the automotive industry could be volatile if there are any sudden shifts in employment rates, oil prices or consumer confidence.

Automotive Marketing Insights 69 Insights @JumpstartAuto JumpstartAuto.com